9911796707
TMI Blog2021 (4) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Single Judge in W.P.No.41229/2019 (Mr. Mukkaram Jan vs. Securities Exchange Board of India), by which the show cause notice issued by the appellant has been quashed. 2. The facts of the case reveal that the Securities Exchange Board of India (SEBI for short) is a body corporate and established under the provisions of the Securities and Exchange Board of India Act, 1992. The respondent before this Court at the relevant point of time was one of the Directors of Cranes Software International Limited (the Company). The Company had declared dividend in its Annual General Body Meeting held on 29.9.2009 for the year 2008-09 and the total dividend declared by the Company was to the tune of Rs. 2,35,53,370/-. The Company failed to distribute t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hyan Chinnappa has placed reliance on three judgments of Securities Appellate Tribunal, Mumbai. In the case of Ashlesh Gunvantbhai Shah Vs. Securities and Exchange Board of India (Appeal No.169 of 2019, decided on 31.1.2020) in respect of certain irregularities in the script, the Tribunal has held that delay of seven years is inordinate. In the case of Sanjay Jethalal Soni and others Vs. Securities and Exchange Board of India (Appeal No.102 of 2019, decided on 14.11.2019), the Tribunal has held delay of five years as inordinate. The Tribunal has placed reliance on several decisions of the Apex Court and quashed the show-cause notices. 9. Shri. Nithin Prasad is right in his submission that in normal circumstances, this Court ought not to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly allowed. 12. Show-cause notices dated October 20, 2016 and August 20, 2019 as per Annexures- A and B respectively are quashed." 6. The learned Single Judge taking into account the judgment delivered in the case of Ashlesh Gunvantbhai Shah Vs. Securities and Exchange Board of India (Appeal No.169 of 2019, decided on 31.1.2020) and the judgment delivered in the case of Sanjay Jethalal Soni and others Vs. Securities and Exchange Board of India (Appeal No.102 of 2019, decided on 14.11.2019) has held that in the aforesaid cases on account of delay, the show cause notices were quashed and therefore, as the Securities Appellate Tribunal has held that delay of 5 years or more in initiating action by the SEBI is unsustainable, the show caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no jurisdiction to do so. It is quite possible that after considering the reply to the show-cause notice or after holding an enquiry the authority concerned may drop the proceedings and/or hold that the charges are not established. It is well settled that a writ lies when some right of any party is infringed. A mere show-cause notice or charge-sheet does not infringe the right of anyone. It is only when a final order imposing some punishment or otherwise adversely affecting a party is passed, that the said party can be said to have any grievance. 15. Writ jurisdiction is discretionary jurisdiction and hence such discretion under Article 226 should not ordinarily be exercised by quashing a show-cause notice or charge sheet. 16. No dou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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